[ET Net News Agency, 17 March 2021] Morgan Stanley lifted its target price for China
Oilfield Services (COSL) (02883) to HK$11.13 from HK$8.75 and maintained its "overweight"
rating.
The research house believes CNOOC's (00883) high production target and strong capex
growth should support a continuous recovery in COSL's earnings. CNOOC's active exploration
and production activities in Bohai Bay and the South China Sea also highlight this
opportunity.
Morgan thinks that COSL will be best positioned to benefit from CNOOC's production and
capex growth in the next few years. It continues to believe that well services will act as
the main driver for COSL's earnings improvement in the next few years. (KL)